"Written in the spirit of the long time Yale Professor, James Tobin, who has held the view that monetary policy is not neutral, this volume provides an analysis of the different economic performances exhibited by the USA, the Euro-area, and Japan in the last decade. Through addressing the...

Monetary policy has pursued the concept of inflation targeting. This has been implemented in many countries. Here interest rates are supposed to respond to an inflation gap and output gap. Yet, recently monetary policy, in particular in the US after the subprime and the credit crises, the...

This paper discusses the interaction of fiscal and monetary policy in the euro area. Given the existence of a monetary union, but absence of a federal fiscal union, many observers suggest a fiscal union as the next step of euro area constitutional reform. Though further fiscal capacity has a...